For a roughly equal partnership where 2 investors split costs and tasks 50-50 for finding and wholesaling houses (and may buy individually, buying the other person out for related marketing costs), what terms would you include in a partnership agreement?
For those of you with partner or JV contracts, what clauses do you recommend including?
What are some unforeseen things that could change/go wrong to factor in?
All ideas welcome! thanks in advance
Anything and everything you can think of should be agreed upon. The last thing you want is someone to says they will split every 50/50 and then after a couple months they only 10% of the work and contribute 10% of the finances but at the end of the deal expect 50% of the pay. Everything should written out, even if it seems ridiculous in the moment.
You should go discuss with a lawyer. You should not attempt to draft your own partnership agreement. Partnership law is very complex; in fact, many lawyers don't understand it nor practice it.
What @Colin Smith said.. EVERYTHING, no matter how silly it seems.
Think of it like a pre-nup. It may all be fine and dandy now. So agree NOW as to how to handle A, B, and C before the s*** hits the fan (it always does).
Then have a lawyer tweak it.
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